Under Armour profit, outlook rise

ChelseaStevenson

Under Armour Inc.'s
UA, -0.03%
second-quarter profit rose 6.8% on broad-based sales growth across all of its segments, led by footwear.

For the year, the company raised its revenue outlook, seeing growth of 22% to 24% to a range of $1.8 billion to $1.82 billion, from its previous growth view of 21% to 22%. Under Armour sees operating income in the range of $205 million to $207 million, representing growth of 26% to 27%. It previously guided for a growth rate of 25% to 26%.

Shares climbed 6.5% to $51.50 in light premarket trading as results also beat expectations. The stock is up 35% so far this year.

"As we head into the second half of the year, the opportunities for our brand have never been greater. Sustaining our momentum in footwear and women's will be a priority, and we are elevating the messaging behind these opportunities to help drive further awareness with our consumers," said Chief Executive Kevin Plank.

The sports-apparel company has posted nine consecutive quarters of top-line growth, and its bottom line has steadily grown as well. But some analysts believe higher input costs and seasonal markdowns pressure the company's margins. This quarter, the company's earnings growth was hindered by marketing costs, Under Armour said. The company has tried to focus more on performance in its women's gear after an earlier product emphasis on color and fashion.

For the period ended June 30, Under Armour posted a profit of $6.7 million, from $6.2 million a year earlier. Per-share earnings were unchanged at six cents. Revenue rose 27% to $369.5 million.

Analysts polled by Thomson Reuters had seen earnings of five cents a share on revenue of $359 million.

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